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It depends on what type of party I am throwing for him.Last year when my oldest turned 10, we did an at home party. I gave him 15 invitations to pass out at school to friends of his choice.And then of course, we had all our family here and thats more children.But when its a home party, I don't mind for him to invite more kids.
When I did a bowling party for him, I allowed him 10 friends.
This year..he wants another at home party..not sure if I'll just have him invite the whole class or do like we did last year.

I tried the invite everyone in the class bit when my oldest was in pre-school. Out of 18 kids I got 2 RSVP (yes) and then NO ONE showed up! So ever since then I tell them they can invite 2-3 friends- and it is usually their closest or best friends.

The whole class. Out of all those kids usually only about 6 show up.
If we are doing Chuck E Cheese or bowling then I let them invite only who they really want there since it's pricier than a home party.
Typical b-day budget. $200 or less.

My DD turned two and we spent about $60 on her whole party. We got 4 pizzas, 20 cupcakes with two small cakes, and lots of 4 12 pack cases of sodas. There were 20 people at the party! This was a lot because I found good sales on sodas and I had coupons for Pizza.